Wednesday, January 30, 2013

PHONES 4U ANNOUNCES FIRST AVAILABILITY OF NEW BLACKBERRY Z10 SMARTPHONE IN WHITE

New BlackBerry Z10 in white, available at Phones 4u before any other retailer

Both black and white colour variants of the new BlackBerry Z10 available at ALL Phones 4u stores and online from 31st January 2013

LONDON, 16:15, 30TH JANUARY, 2013: Phones 4u today announced availability of the new BlackBerry® Z10 smartphone in both white and black colour models. Consumers wanting to get their hands on the new BlackBerry® 10 smartphone can visit Phones 4u from tomorrow. The white model will be available first from Phones 4u.

Phones 4u will be celebrating the launch of the newest BlackBerry smartphone with none other than pop princess Pixie Lott at the flagship Phones 4u Oxford Street store tomorrow from 9am, where customers and fans can be amongst the first to experience the new BlackBerry Z10, get their hands on some freebies, AND rub shoulders with Pixie Lott herself. The first fifty customers to purchase the new BlackBerry Z10 at Phones 4u Oxford Street tomorrow will also receive a 64GB BlackBerry® PlayBook™ tablet.

Customers will also be able to purchase the white or black model from 9am on 31st January online at Phones 4u. The first 250 customers to purchase a new BlackBerry Z10 from Phones 4u online will also receive a 64GB BlackBerry PlayBook.

Scott Hooton, Chief Commercial Officer at Phones 4u comments: "We have a longstanding heritage in offering BlackBerry smartphones to consumers and especially in securing BlackBerry colour exclusives for our customers. We know there's a huge appetite for BlackBerry smartphones, and a large proportion of our customer base in early 2013 will be returning BlackBerry customers looking to upgrade their handset with Phones 4u.We're extremely excited to be launching the highly anticipated BlackBerry Z10, which promises to offer a completely new mobile experience, and we look forward to welcoming customers into our store to get their hands on the BlackBerry Z10 in white before anyone else."

BlackBerry® 10 is a re-designed, re-engineered and re-invented platform that creates a powerful and unique new mobile computing experience. BlackBerry 10 gives customers a faster and smarter experience that continuously adapts to their needs. Every feature, every gesture, and every detail is designed to keep customers moving and includes advancements such as:

•Peek and Flow into the BlackBerry Hub – A new mobile computing paradigm where what matters to customers is always one swipe away

•Keyboard – Understands and adapts to customers, so they can type faster and more accurately

•BBM™ (BlackBerry® Messenger) – Allows customers to share anything with the people that matter to them in an instant

•BlackBerry® Balance™ technology – Protects what is important to customers

The BlackBerry Z10 is available in both black and white at Phones 4u, free from £36a month on contract, on a choice of networks.

Notes

*Free 64GB BlackBerry PlayBook available on £36 and above tariffs only

Pixie Lott will be at the Phones 4u Oxford Street store from 9am on Thursday 31st January, which is located at 399/405 Oxford Street, London, W1C 2BU (nearest station is Bond Street).

Research in Motion (RIM) are no more. To coincide with the launch of the new BlackBerry 10 operating system, the company will now be called just "BlackBerry" and carries the tagline "One brand. One promise."

The new BlackBerry 10 operating system is built on their own operating system, QNX. RIM bought QNX nearly three years ago, but although QNX has a reputation as a rock-solid operating system it didn't have a UI that could be used on handheld devices, so that (and many other components) had to be written from scratch. Even so, three years is a long time in the mobile phone industry and things have moved on substantially since then.

On the surface, BlackBerry 10 appears to be much more contemporary than Android or the iPhone out of the box, but it doesn't go as far as Windows Phone 8 which some people think goes *too* far from traditional designs. The interface makes use of various gestures to control applications, it is designed for easy multitasking (swiping the bottom of the screen bring up all running apps, for example). You can also peek from one application to another, for example to quickly check email while doing something else, and pulling down the screen reveals the calendar without closing the current application. The interface is designed to be use with a single hand.

BB10 aggregates information from various sources in one place, for example email, SMS, social networking and BBM messages appear in one screen. lightly creepily, BB10 will also pull together the personal details of contacts from places like LinkedIn and Facebook and builds up a dossier about them, including photographs and birthdays if they are available. BlackBerry say that one of the key markets are "hyper connected" customers who use social network a lot.

BlackBerry 10 is also designed to support both work and home profiles and move easily between them (called "BlackBerry Balance"), which is ideal if you want to bring your own device to work (known as BYOD). One part of the device can be fully managed by the company that the user works for, but the other part is logically separate and private.

BlackBerry Messenger (BBM) is a big issue for many users, and now it has been updated for video calling. You can also share the BlackBerry's screen across BBM, which is ideal for business collaboration. BBM is a key differentiator for BlackBerry and is just about one of the only things that BlackBerry remains relatively unchallenged.

BlackBerry Remember is a personal information management (PIM) tool that is a unified way of storing documents, web addresses, notes and media relating to certain tasks, also all in one place. Unlike more traditional PIMs, Remember looks like it might actually be useful for managing your personal information.The camera has touch focus, and allows time shifting where effectively you can choose the best stills shot from a short video clip. Pictures can be edited on the device, which nicely sidesteps the need to use a service like Instagram if you want to retouch the photo before sharing. The "BlackBerry Story Maker" is another novel application, which allows film clips, pictures and audio to be combined together to make a short movie clip.

Several major movie and music labels have signed up to allow content to be bought through the BlackBerry World application store, which until now has been a collection of pretty uninspiring applications. When it comes to apps, BlackBerry have tried very hard to build up a decent collection before launch, with 70,000 applications available at launch with 1000 "top applications" available, but for all we know the other 69,000 could be fart apps. On the serious side, Skype, Amazon Kindle, Whatsapp, Foursquare and Angry Birds will all be available for the BlackBerry 10 platform.

Two devices will be available at launch, the BlackBerry Z10 is a full touchscreen device with a 4.2" display, the BlackBerry Q10 comes with a traditional keyboard. In the UK the Z10 will be available from tomorrow, with other major markets coming next week.

Thursday, January 24, 2013

Nokia Corporation Q4 and full year 2012 Interim Report

Nokia CorporationInterim reportJanuary 24, 2013 at 13.00 (CET+1)

This
is a summary of the fourth quarter and full year 2012 interim report
published today. The complete fourth quarter and full year 2012 interim
report with tables is available at http://www.results.nokia.com/results/Nokia_results2012Q4e.pdf.
Investors should not rely on summaries of our interim reports only, but
should review the complete interim reports with tables.

FINANCIAL AND OPERATING HIGHLIGHTS

Fourth quarter 2012 highlights:Nokia Group non-IFRS EPS in Q4 2012 was EUR 0.06; reported EPS was EUR 0.05.- Nokia Group achieves underlying operating profitability, with Q4 non-IFRS operating margin of 7.9%. -
Nokia Group strengthened its net cash position by approximately EUR 800
million sequentially, of which approximately EUR 650 million was
generated by Nokia Siemens Networks.- Devices &
Services Q4 non-IFRS operating margin improved quarter-on-quarter to
1.3%, due to an increase in gross margin as well as a decrease in
operating expenses. - Nokia Siemens Networks non-IFRS
operating margin improved quarter-on-quarter and year-on-year to a 14.4%
in Q4, the highest level of underlying operating profitability since
its formation in April 2007, primarily due to an increase in gross
margin.

Full year 2012 highlights:Nokia Group full year 2012 non-IFRS EPS was EUR -0.17; reported EPS was EUR -0.84. - Nokia Group achieves underlying operating profitability, with full year 2012 non-IFRS operating margin of 0.4%. -
Nokia Group ends 2012 with a strong balance sheet and solid cash
position. Gross cash was EUR 9.9 billion and net cash was EUR 4.4
billion, after incurring cash outflows related to restructuring of
approximately EUR 1.5 billion and dividend payment of approximately EUR
750 million. - To ensure strategic flexibility, the
Nokia Board of Directors will propose that no dividend payment will be
made for 2012 (EUR 0.20 per share for 2011). Nokia's Q4 financial
performance combined with this dividend proposal further solidifies the
company's strong liquidity position.

Commenting on the results, Stephen Elop, Nokia CEO, said:"We
are very encouraged that our team's execution against our business
strategy has started to translate into financial results. Most notably
we are pleased that Nokia Group reached underlying operating
profitability in the fourth quarter and for the full year 2012.

While
the first half of 2012 was difficult for Nokia Group, in Q4 2012 we
strengthened our financial position, improved our underlying operating
margin in Devices & Services, introduced the HERE brand to expand
our mapping and location experiences, and drove record profitability in
Nokia Siemens Networks.

We remain focused on
moving through our transition, which includes continuing to improve our
product competitiveness, accelerate the way we operate and manage our
costs effectively. All of these efforts are aimed at improving our
financial performance and delivering more value to our shareholders."

SUMMARY FINANCIAL INFORMATION

Reported and Non-IFRS fourth quarter 2012 results1,2

Reported and Non-IFRS full year 2012 results1,2

EUR million

Q4/2012

Q4/2011

YoY Change

Q3/2012

QoQChange

2012

2011

YoY Chan-ge

Nokia Group

Net sales

8 041

10 005

-20%

7 239

11%

30 176

38 659

-22%

Operating profit

439

-954

-576

-2 303

-1 073

Operating profit (non-IFRS)

635

478

33%

78

714%

126

1 825

-93%

EPS, EUR diluted

0.05

-0.29

-0.26

-0.84

-0.31

EPS, EUR diluted(non-IFRS)3

0.06

0.06

0%

-0.07

-0.17

0.29

Net cash from operating activities

563

634

-11%

-429

-354

1 137

Net cash and other liquid assets4

4 360

5 581

-22%

3 564

22%

4360

5 581

-22%

Devices & Services5

Net sales

3 854

5 997

-36%

3 563

8%

15 686

23 943

-34%

Smart Devices net sales

1 225

2 747

-55%

976

26%

5 446

10 820

-50%

Mobile Phones net sales

2 468

3 040

-19%

2 366

4%

9 436

11 930

-21%

Mobile device volume (million units)

86.3

113.5

-24%

82.9

4%

335.6

417.1

-20%

Smart Devices volume (million units)

6.6

19.6

-66%

6.3

5%

35.1

77.3

-55%

Mobile Phones volume (million units)

79.6

93.9

-15%

76.6

4%

300.5

339.8

-12%

Mobile device ASP6

45

53

-15%

43

5%

47

57

-18%

Smart Devices ASP6

186

140

33%

155

20%

155

140

11%

Mobile Phones ASP6

31

32

-3%

31

0%

31

35

-11%

Operating profit

276

203

36%

-683

-1 100

884

Operating profit (non-IFRS)

52

292

-82%

-263

-703

1 683

Operating margin %

7.2%

3.4%

-19.2%

-7.0%

3.7%

Operating margin % (non-IFRS)

1.3%

4.9%

-7.4%

-4.5%

7.0%

Location & Commerce5

Net sales

278

306

-9%

265

5%

1 103

1 091

1%

Operating profit

-56

-1 205

-56

-301

-1 526

Operating profit(non-IFRS)

40

29

38%

37

8%

154

48

221%

Operating margin %

-20.1%

-393.8%

-21.1%

-27.3%

-139.9%

Operating margin %(non-IFRS)

14.4%

9.5%

14.0%

13.9%

4.4%

Nokia SiemensNetworks5

Net sales

3 988

3 815

5%

3 501

14%

13 779

14 041

-2%

Operating profit

251

67

275%

182

38%

-799

-300

Operating profit (non-IFRS)

575

176

227%

323

78%

778

225

246%

Operating margin %

6.3%

1.8%

5.2%

-5.8%

-2.1%

Operating margin %(non-IFRS)

14.4%

4.6%

9.2%

5.6%

1.6%

Note 1 relating to non-IFRS (also referred to as "underlying") results:
In addition to information on our reported IFRS results, we provide
certain information on a non-IFRS, or underlying business performance,
basis. Non-IFRS results exclude special items for all periods. In
addition, non-IFRS results exclude intangible asset amortization, other
purchase price accounting related items and inventory value adjustments
arising from (i) the formation of Nokia Siemens Networks and (ii) all
business acquisitions completed after June 30, 2008. Nokia believes
that our non-IFRS results provide meaningful supplemental information to
both management and investors regarding Nokia's underlying business
performance by excluding the above-described items that may not be
indicative of Nokia's business operating results. These non-IFRS
financial measures should not be viewed in isolation or as substitutes
to the equivalent IFRS measure(s), but should be used in conjunction
with the most directly comparable IFRS measure(s) in the reported
results. See note 2 below for information about the exclusions from our
non-IFRS results. More information, including a reconciliation of our Q4
2012 and Q4 2011 non-IFRS results to our reported results, can be found
in our complete Q4 2012 interim report with tables on pages 18 and
20-24. A reconciliation of our full year 2012 and full year 2011
non-IFRS results to our reported results can be found in the same report
on pages 40-45. A reconciliation of our Q3 2012 non-IFRS results to
our reported results can be found in our complete Q3 interim report with
tables on pages 19 and 22-26 published on October 18, 2012.Note 2 relating to non-IFRS exclusions:

Q4 2012 - EUR 196 million (net) consisting of:-
EUR 255 million restructuring charge and other associated item in Nokia
Siemens Networks, including EUR 34 million of net charges related to
country and contract exits based on new strategy that focuses on key
markets and product segments, as well as an impairment of assets of
EUR 2 million.- EUR 9 million restructuring charge in Location & Commerce- EUR 2 million restructuring related impairments in Devices & Services- EUR 75 million net benefit from releases of restructuring provisions in Devices & Services- EUR 21 million positive item from a cartel claim settlements in Devices & Services- EUR 52 million net gain on sale of Vertu business in Devices & Services- EUR 79 million net gain on sale of real estate in Devices & Services-
EUR 67 million of intangible asset amortization and other purchase
price accounting related items arising from the formation of Nokia
Siemens Networks and the acquisition of Motorola Solutions' networks
assets- EUR 87 million of intangible asset
amortization and other purchase price accounting related items arising
from the acquisition of NAVTEQ- EUR 1 million of
intangible assets amortization and other purchase price related items
arising from the acquisition of Novarra, MetaCarta and Motally in
Devices & Services

Q3 2012 - EUR 654 million (net) consisting of:-
EUR 74 million restructuring charge and other associated items in Nokia
Siemens Networks, including EUR 3 million of net charges related to
country and contract exits based on new strategy that focuses on key
markets and product segments.- EUR 2 million restructuring charge in Location & Commerce- EUR 454 million restructuring charge and other associated items in Devices & Services-
EUR 67 million of intangible asset amortization and other purchase
price accounting related items arising from the formation of Nokia
Siemens Networks and the acquisition of Motorola Solutions' networks
assets- EUR 91 million of intangible asset
amortization and other purchase price accounting related items arising
from the acquisition of NAVTEQ- EUR 1 million of
intangible assets amortization and other purchase price related items
arising from the acquisition of Novarra, MetaCarta and Motally in
Devices & Services- EUR 35 million positive item from a cartel claim settlement in Devices & Services

Note 3 relating to non-IFRS Nokia EPS:Nokia
taxes were unfavorably impacted by Devices & Services taxes as no
tax benefits are recognized for certain Devices & Services deferred
tax items. If Nokia's earlier estimated long-term tax rate of 26% had
been applied, non-IFRS Nokia EPS would have been approximately 0.5 Euro
cent higher in Q4 2012. Going forward on a non-IFRS basis, until a
pattern of tax profitability is reestablished, Nokia expects to record
quarterly tax expense of approximately EUR 50 million related to its
Devices & Services business and approximately EUR 50 million related
to its Nokia Siemens Networks business. Nokia expects to continue to
record taxes related to its Location & Commerce business at a 26%
rate.Note 4 relating to Nokia net cash and other liquid assets:
Calculated as total cash and other liquid assets less interest-bearing
liabilities. For selected information on Nokia Group interest-bearing
liabilities, please see the table on page 53 of the complete Q4 2012
interim report with tablesNote 5 relating to operational and reporting structure:
We adopted our current operational structure during 2011 and have three
businesses: Devices & Services, Location & Commerce and Nokia
Siemens Networks and four operating and reportable segments: Smart
Devices and Mobile Phones within Devices & Services, Location &
Commerce and Nokia Siemens Networks. Smart Devices focuses on
smartphones and Mobile Phones focuses on mass market mobile devices,
including Asha full touch smartphones. Devices & Services also
contains Devices & Services Other which includes net sales of our
luxury phone business Vertu through October 12, 2012, spare parts and
related cost of sales and operating expenses, as well as intellectual
property related income and common research and development expenses. In
October 2012, we completed the divestment of Vertu to EQT VI, a
European private equity firm. Location & Commerce focuses on the
development of location-based services and local commerce. On November
13, 2012, Nokia introduced HERE, the new brand for its location and
mapping service. For financial reporting purposes, the Location &
Commerce business will be renamed as the HERE business, starting with
the first quarter 2013. Nokia Siemens Networks is one of the leading
global providers of telecommunications infrastructure hardware, software
and services. Nokia Siemens Networks completed the acquisition of
Motorola Solutions' networks assets on April 30, 2011. Accordingly, the
results of Nokia Siemens Networks for 2012 are not directly comparable
to 2011.

-
Nokia expects its Devices & Services non-IFRS operating margin in
the first quarter 2013 to be approximately negative 2 percent, plus or
minus four percentage points. This outlook is based on Nokia's
expectations regarding a number of factors, including:- competitive industry dynamics continuing to negatively affect the Mobile Phones and Smart Devices business units;- the first quarter being a seasonally weak quarter;- consumer demand, particularly for our Lumia and Asha smartphones; - continued ramp up for our new Lumia smartphones;- expected cost reductions under Devices & Services' restructuring program; and- the macroeconomic environment.

-
Nokia continues to target to reduce its Devices & Services non-IFRS
operating expenses to an annualized run rate of approximately EUR 3.0
billion by the end of 2013.- Nokia expects Location
& Commerce non-IFRS operating margin in the first quarter 2013 to be
negative due to lower recognized revenue from internal sales, which
carry higher gross margin, and to a lesser extent by a negative mix
shift within external sales.- Nokia and Nokia Siemens
Networks expect Nokia Siemens Networks non-IFRS operating margin in the
first quarter 2013 to be approximately positive 3 percent, plus or minus
four percentage points. This outlook is based on Nokia Siemens
Networks' expectations regarding a number of factors, including:- competitive industry dynamics;- the first quarter being a seasonally weak quarter;- product and regional mix;- expected continued improvement under Nokia Siemens Networks' restructuring program; and- the macroeconomic environment.

-
Nokia Siemens Networks now targets to reduce its non-IFRS annualized
operating expenses and production overheads by more than EUR 1 billion
by the end of 2013, compared to the end of 2011. Nokia Siemens Networks
previous target was to reduce its non-IFRS annualized operating expenses
and production overheads by EUR 1 billion by the end of 2013, compared
to the end of 2011.

FOURTH QUARTER 2012 FINANCIAL AND OPERATING DISCUSSION

NOKIA GROUP

See
note 5 to our Summary Financial Information table above concerning our
current operational and reporting structure which we adopted during
2011. The following discussion includes information on a non-IFRS, or
underlying business performance, basis. See notes 1 and 2 to our Summary
Financial Information table above for information about our underlying
non-IFRS results and the non-IFRS exclusions for the periods discussed
below.

The following table sets forth the
year-on-year and sequential growth rates in our net sales on a reported
basis and at constant currency for the periods indicated.

FOURTH QUARTER 2012 NET SALES, REPORTED & CONSTANT CURRENCY1

YoY Change

QoQ Change

Group net sales - reported

-20%

11%

Group net sales - constant currency1

-23%

12%

Devices & Services net sales -reported

-36%

8%

Devices & Services net sales - constant currency1

-40%

8%

Nokia Siemens Networks net sales -reported

5%

14%

Nokia Siemens Networks net sales - constant currency1

1%

16%

Note 1:
Change in net sales at constant currency excludes the impact of changes
in exchange rates in comparison to the Euro, our reporting currency.

The
following table sets forth Nokia Group's reported cash flow for the
periods indicated and financial position at the end of the periods
indicated, as well as the year-on-year and sequential growth rates.

Year-on-year,
net cash and other liquid assets decreased by EUR 1.2 billion in the
fourth quarter 2012, primarily due to cash outflows related to
restructuring of approximately EUR 1.5 billion, the payment of the
dividend of approximately EUR 750 million, cash outflows related to net
financial expenses and taxes as well as capital expenditures. This was
partially offset by positive overall net cash from operating activities,
excluding cash outflows related to restructuring, net financial
expenses and taxes, as well as cash flows related to the receipt of
quarterly platform support payments from Microsoft (which commenced in
the fourth quarter 2011).

Sequentially, net cash
and other liquid assets increased by EUR 796 million in the fourth
quarter 2012, primarily due to positive Nokia Siemens Networks operating
profits, the receipt of a USD 250 million (approximately EUR 196
million) quarterly platform support payment from Microsoft and proceeds
from real estate sales and business divestments, partially offset by
cash outflows related to restructuring, taxes and net financial expenses
as well as capital expenditures.

In the fourth
quarter 2012, Nokia Siemens Networks' contribution to net cash from
operating activities was approximately EUR 740 million, primarily due to
net profit adjusted for non-cash items. At the end of the fourth
quarter 2012, Nokia Siemens Networks' contribution to the Nokia gross
cash was EUR 2.4 billion and contribution to Nokia's net cash was EUR
1.3 billion.

Our agreement with Microsoft includes
platform support payments from Microsoft to us as well as software
royalty payments from us to Microsoft. In the fourth quarter 2012, we
received a quarterly platform support payment of USD 250 million
(approximately EUR 196 million). Under the terms of the agreement
governing the platform support payments, the amount of each quarterly
platform support payment is USD 250 million. We have a competitive
software royalty structure, which includes annual minimum software
royalty commitments. Minimum software royalty commitments are paid
quarterly. Over the life of the agreement, both the platform support
payments and the minimum software royalty commitments are expected to
measure in the billions of US dollars. Over the life of the agreement
the total amount of the platform support payments is expected to
slightly exceed the total amount of the minimum software royalty
commitment payments. To date the amount of platform support payments
received by Nokia has exceeded the amount of minimum royalty commitment
payments to Microsoft. Thus for the remainder of the life of the
agreement the total amount of the minimum software royalty commitment
payments are expected to exceed the total amount of the platform support
payments. In accordance with the terms of the agreement, the platform
support payments and annual minimum software royalty commitment payments
continue for a corresponding period of time.

During
fourth quarter 2012, Nokia Group performed its annual goodwill
impairment assessment. The methodology and models used for the annual
impairment assessment are consistent with our second quarter 2012
interim analysis and our last annual assessment performed during the
fourth quarter 2011. Inputs to the valuation model, such as cash flows,
discount rates and growth rates, have been updated to reflect our most
recent projections and they materially align with the interim analysis
conducted during second quarter 2012.

At the date
of our 2012 annual impairment assessment, goodwill amounting to EUR 530
million, EUR 899 million, EUR 3 270 million and EUR 183 million was
allocated to Mobile Phones, Smart Devices, Location & Commerce and
Nokia Siemens Networks, respectively. No goodwill impairment charge was
recorded during the fourth quarter 2012 as a result of the goodwill
impairment assessment. However a change in any of the key assumptions
used in measuring the recoverable value of our Location & Commerce
business could have resulted in goodwill impairment. While we believe
the estimated recoverable values are reasonable, actual performance in
the short-term and long-term could be materially different from our
forecasts, which could impact future estimates of recoverable value of
our reporting units and could result in impairment charges.

DEVICES & SERVICES

The
following table sets forth a summary of the results for our Devices
& Services business for the periods indicated, as well as the
year-on-year and sequential growth rates.

DEVICES & SERVICES RESULTS SUMMARY

Q4/2012

Q4/2011

YoY Change

Q3/2012

QoQChange

Net sales (EUR million)1

3 854

5 997

-36%

3 563

8%

Mobile device volume (million units)

86.3

113.5

-24%

82.9

4%

Mobile device ASP (EUR)

45

53

-15%

43

5%

Non-IFRS gross margin (%)

23.9%

25.8%

18.5%

Non-IFRS operating expenses (EUR million)

869

1 262

-31%

915

-5%

Non-IFRS operating margin (%)

1.3%

4.9%

-7.4%

Note 1: Includes IPR income recognized in Devices & Services Other net sales.

Devices & Services OtherBoth
year-on-year and sequentially, Devices & Services Other net sales
were lower in the fourth quarter 2012 primarily due to the divestment of
Vertu. Following the divestment of Vertu, Devices & Services Other
net sales are comprised of IPR income and sales of spare parts. In the
fourth quarter 2012, Devices & Services Other net sales benefitted
from non-recurring IPR income of approximately EUR 50 million. Within
Devices & Services Other, we estimate that our current annual IPR
income run-rate is approximately EUR 0.5 billion.

Net Sales and Volumes by Geographic AreaThe
following table sets forth the net sales for our Devices & Services
business for the periods indicated, as well as the year-on-year and
sequential growth rates, by geographic area. IPR income is allocated to
the geographic areas contained in this chart.

DEVICES & SERVICES NET SALES BY GEOGRAPHIC AREA

EUR million

Q4/2012

Q4/2011

YoY Change

Q3/2012

QoQChange

Europe

1 210

1 922

-37%

985

23%

Middle East & Africa

745

1 065

-30%

682

9%

Greater China

213

1 008

-79%

278

-23%

Asia-Pacific

941

1 297

-27%

977

-4%

North America

196

53

270%

36

444%

Latin America

549

652

-16%

605

-9%

Total

3 854

5 997

-36%

3 563

8%

The
following table sets forth the mobile device volumes for our Devices
& Services business for the periods indicated, as well as the
year-on-year and sequential growth rates, by geographic area.

DEVICES & SERVICES MOBILE DEVICE VOLUMES BY GEOGRAPHIC AREA

million units

Q4/2012

Q4/2011

YoY Change

Q3/2012

QoQChange

Europe

19.4

25.3

-23%

16.8

15%

Middle East & Africa

21.8

25.9

-16%

19.1

14%

Greater China

4.6

14.7

-69%

5.8

-21%

Asia-Pacific

28.7

34.7

-17%

30.1

-5%

North America

0.7

0.5

40%

0.3

133%

Latin America

11.1

12.4

-10%

10.8

3%

Total

86.3

113.5

-24%

82.9

4%

On
a year-on-year basis, the increases in North America net sales and
volumes were primarily due to our Smart Devices business unit, most
notably higher net sales and volumes of our Lumia devices. On a
year-on-year basis, the decrease in Greater China net sales was
primarily due to our Smart Devices business unit, most notably lower net
sales of our Symbian devices. On a year-on-year basis, the decrease in
Greater China volumes was primarily due to our Smart Devices business
unit, most notably lower volumes of our Symbian devices as well as lower
volumes of our Mobile Phones devices.

On a
sequential basis, the increases in North America net sales and volumes
were primarily due to our Smart Devices business unit, most notably
higher net sales and volumes of our Lumia devices. On a sequential
basis, the decreases in Greater China net sales and volumes were
primarily due to lower net sales and volumes our Mobile Phones devices.

Operating ExpensesDevices
& Services non-IFRS operating expenses decreased 31% year-on-year
and 5% sequentially in the fourth quarter 2012. On a year-on-year basis,
operating expenses related to Mobile Phones and Smart Devices decreased
19% and 34% respectively, in the fourth quarter 2012. On a sequential
basis, operating expenses related to Mobile Phones decreased by 12%
while Smart Devices operating expenses increased 9%, respectively, in
the fourth quarter 2012. In addition to the factors described below, the
year-on-year changes were affected by the proportionate allocation of
operating expenses being affected by the relative mix of sales and gross
profit performance between Mobile Phones and Smart Devices. This
resulted in higher and lower relative allocations to Mobile Phones and
Smart Devices, respectively.

Devices &
Services non-IFRS research and development expenses decreased 34%
year-on-year in the fourth quarter 2012. On a sequential basis, Devices
& Services non-IFRS research and development expenses decreased 8%
in the fourth quarter 2012. Both the year-on-year and sequential
declines were primarily due to ramping down Symbian and MeeGo,
reductions in certain Mobile Phones related activities and overall cost
controls.

Devices
& Services non-IFRS administrative and general expenses decreased
30% year-on-year in the fourth quarter 2012 and 35% sequentially. The
year-on-year and sequential decreases are primarily related to cost
savings in support functions, business divestments and shared function
cost categorization.

In the fourth quarter 2012,
Devices & Services non-IFRS other income and expense had a negative
year-on-year and positive sequential impact on profitability. On a
reported basis, other income and expense was positively affected in the
fourth quarter 2012 primarily as a result of net gains from the sale of
real estate of EUR 79 million, the divestment of the Vertu business of
EUR 52 million and a positive item of EUR 21 million from a cartel claim
settlement, as well as an EUR 75 million net benefit related to
restructuring provision releases as discussed in the "Cost Reduction
Activities and Planned Operational Adjustments" section below.

The
sequentially higher Devices & Services non-IFRS operating margin in
the fourth quarter 2012 was primarily due to higher gross margin and to
a lesser extent lower operating expenses.

Cost Reduction Activities and Planned Operational Adjustments

DEVICES & SERVICES RESTRUCTURING SUMMARY

EUR (million)

Q4/2012 (approximate)

Cumulative up to Q4/2012 (approximate)

Q1/2013 (approxi-mate estimate)

2013 (approxi-mate estimate

Total (approximate estimate)

Restructuring related charges

-73

1 400

Not provided

Not provided

1 600

Restructuring related cash outflows

300

1 100

150

300

1 400

Nokia
continues to target to reduce its Devices & Services non-IFRS
operating expenses to an annualized run rate of approximately EUR 3.0
billion by the end of 2013.

At the end of the
fourth quarter 2012, Devices & Services and Corporate Common had
approximately 33 200 employees, a reduction of approximately 16 500
compared to fourth quarter 2011, and approximately 5 000 compared to
third quarter 2012.

In connection with the
implementation of our strategy announced in February 2011, we have
announced and made a number of changes to our operations. In the fourth
quarter of 2012, we recognized a net benefit of EUR 73 million related
to restructuring provision releases and impairments related to our
restructuring activities in Devices & Services. By the end of the
fourth quarter 2012, we had recorded cumulative Devices & Services
restructuring charges and other associated items of approximately EUR
1.4 billion. In total, we expect now cumulative Devices & Services
restructuring charges of approximately EUR 1.6 billion before the end of
2013. This is approximately EUR 200 million less than what we estimated
earlier.

By the end of the fourth quarter 2012,
Devices & Services had cumulative restructuring related cash
outflows of approximately EUR 1.1 billion. We expect Devices &
Services restructuring related cash outflows to be approximately EUR 150
million in first quarter 2013 and approximately EUR 300 million in full
year 2013. Of the total expected charges relating to restructuring
activities of approximately EUR 1.6 billion, we expect Devices &
Services non-cash charges to be approximately EUR 200 million. This
means that we also now expect total restructuring related cash outflows
to be approximately EUR 200 million less than what we estimated earlier.

SMART DEVICES

The
following table sets forth a summary of the results for our Smart
Devices business unit for the periods indicated, as well as the
year-on-year and sequential growth rates.

SMART DEVICES RESULTS SUMMARY

Q4/2012

Q4/2011

YoY Change

Q3/2012

QoQChange

Net sales (EUR million)1

1 225

2 747

-55%

976

26%

Smart Devices volume (million units)

6.6

19.6

-66%

6.3

5%

Smart Devices ASP (EUR)

186

140

33%

155

20%

Gross margin (%)

18.0%

19.9%

-3.5%

Operating expenses (EUR million)2

481

732

-34%

441

9%

Contribution margin (%)2

-21.6%

-7.0%

-48.9%

Note 1: Does not include IPR income. IPR income is recognized in Devices & Services Other net sales.Note 2:
The year-on-year decrease in operating expenses was affected by the
proportionate allocation of operating expenses being affected by the
relative mix of sales and gross profit performance between Mobile Phones
and Smart Devices, resulting in lower relative allocations to Smart
Devices in the first, second, third and fourth quarters 2012.
Accordingly, fourth quarter 2012 operating expenses are not directly
comparable to fourth quarter 2011 operating expenses.

Net SalesOn
a year-on-year basis, the decline in our Smart Devices net sales in the
fourth quarter 2012 was due to lower volumes partially offset by higher
ASPs. On a sequential basis, the increase in our Smart Devices net
sales in the fourth quarter 2012 was due to higher ASPs and volumes.

VolumeDuring
the fourth quarter 2012 we shipped 6.6 million Smart Devices units, of
which 4.4 million were Lumia devices. During the fourth quarter 2012 our
Smart Devices volumes were affected by supply constraints as we ramped
up our production capacity, particularly related to the Lumia 920, which
have continued into the first quarter 2013. Symbian devices accounted
for 2.2 million units of our Smart Devices volumes in the fourth quarter
2012. We expect our Symbian devices to account for a significantly
smaller portion of our overall Smart Devices volumes in the first
quarter 2013 and going forward.

The year-on-year
decline in our Smart Devices volumes in the fourth quarter 2012
continued to be driven by the strong momentum of competing smartphone
platforms and our portfolio transition from Symbian devices to Lumia
devices. The decline was primarily due to lower Symbian device volumes,
partially offset by higher Lumia device volumes. On a geographical
basis, the decrease in volumes was due to lower volumes in Greater
China, Europe, Asia-Pacific, Middle East and Africa and Latin America,
partially offset by an increase in volumes in North America.

On
a sequential basis, the increase in our Smart Devices volumes in the
fourth quarter 2012 was primarily due to higher Lumia device volumes,
partially offset by lower Symbian device volumes. On a geographical
basis, the increase in volumes was primarily due to higher volumes in
North America and Europe, partially offset by lower volumes in all other
regions.

Average Selling PriceThe
year-on-year increase in our Smart Devices ASP in the fourth quarter
2012 was primarily due to a positive mix shift towards sales of our
Lumia devices which carry a higher ASP than our Symbian devices,
partially offset by our pricing actions taken in previous quarters in
2012 related to certain Lumia devices.

Sequentially,
the increase in our Smart Devices ASP in the fourth quarter 2012 was
primarily due to a positive mix shift towards sales of our newly
launched Lumia devices which had a higher ASP, partially offset by
general price erosion. The ASP of our Lumia devices in the fourth
quarter 2012 was EUR 192, compared to EUR 160 in the third quarter 2012.
The increase in Lumia ASPs was primarily due to a positive mix shift
towards sales of our newly launched Lumia devices which had a higher
ASP.

Gross MarginThe
year-on-year decline in our Smart Devices gross margin in the fourth
quarter 2012 was primarily due to greater price erosion than cost
erosion, partially offset by a positive product mix shift towards higher
gross margin Lumia devices as well as the absence of Symbian related
allowances which were recognized in the fourth quarter 2011. From an
operating system perspective, the year-on-year decline in our Smart
Devices gross margin in the fourth quarter 2012 was primarily due to a
lower Symbian gross margin.

On a sequential
basis, the increase in our Smart Devices gross margin in the fourth
quarter 2012 was primarily due to the absence of approximately EUR 120
million of inventory related allowances which were recognized in the
third quarter 2012 as well as a positive product mix shift towards
higher gross margin devices, and lower Symbian fixed costs per unit.
From an operating system perspective, the sequential increase in our
Smart Devices gross margin in the fourth quarter was primarily due to a
higher Lumia gross margin as well as a higher Symbian gross margin.

Increases
or decreases to Smart Devices inventory related allowances may be
required in the future depending on several factors, including consumer
demand and continued ramp up particularly related to our new Lumia
devices.

MOBILE PHONES

The
following table sets forth a summary of the results for our Mobile
Phones business unit for the periods indicated, as well as the
year-on-year and sequential growth rates.

MOBILE PHONES RESULTS SUMMARY

Q4/2012

Q4/2011

YoY Change

Q3/2012

QoQChange

Net sales (EUR million)1

2 468

3 040

-19%

2 366

4%

Mobile Phones volume (million units)

79.6

93.9

-15%

76.6

4%

Mobile Phones ASP (EUR)

31

32

-3%

31

0%

Gross margin (%)

22.2%

27.7%

21.7%

Operating expenses (EUR million)2

346

429

-19%

393

-12%

Contribution margin (%)2

8.2%

13.5%

4.9%

Note 1: Does not include IPR income. IPR income is recognized in Devices & Services Other net sales.Note 2:
The year-on-year decrease in operating expenses was affected by the
proportionate allocation of operating expenses being affected by the
relative mix of sales and gross profit performance between Mobile Phones
and Smart Devices, resulting in higher relative allocations to Mobile
Phones in the first, second, third and fourth quarters 2012.
Accordingly, fourth quarter 2012 operating expenses are not directly
comparable to fourth quarter 2011 operating expenses.

Net SalesOn
a year-on-year basis, the decline in our Mobile Phones net sales in the
fourth quarter 2012 was due to lower volumes as well as lower ASPs. On a
sequential basis, the increase in our Mobile Phones net sales in the
fourth quarter 2012 was primarily due to higher volumes.

VolumeDuring
the fourth quarter 2012 we shipped 79.6 million Mobile Phones units, of
which 9.3 million were Asha full touch smartphones.

On
a year-on-year basis, the decrease in our Mobile Phones volumes in the
fourth quarter 2012 was primarily due to the decline in volumes of our
lower priced devices that we sell to our customers for below EUR 30.
Overall volumes of our higher priced devices that we sell to our
customers for above EUR 30 also declined, despite the addition of Asha
full touch smartphone volumes in the fourth quarter 2012.

On
a sequential basis, the increase in our Mobile Phones volumes in the
fourth quarter 2012 was primarily due to the increase in volumes of our
lower priced devices that we sell to our customers for below EUR 30.
Volumes of our higher priced devices that we sell to our customers for
above EUR 30 also increased, partially due to growth in volumes of our
Asha full touch smartphones.

Average Selling PriceThe
year-on-year decline in our Mobile Phones ASP in the fourth quarter
2012 was primarily due to general price erosion and an increased
proportion of sales of lower priced devices, partially offset by the net
positive impact related to foreign currency fluctuations.

On
a sequential basis, our Mobile Phones ASP was flat in the fourth
quarter 2012 as a mix shift towards higher priced devices, including our
full touch Asha smartphones, as well as the net positive impact from
foreign currency fluctuations were offset by general price erosion.

On a sequential
basis, the increase in our Mobile Phones gross margin in the fourth
quarter 2012 was primarily due to greater cost erosion than price
erosion, partially offset by the net negative impact related to foreign
currency fluctuations.

LOCATION & COMMERCE

On
November 13, 2012, Nokia introduced HERE, the new brand for its
location and mapping service. For financial reporting purposes, the
Location & Commerce business will be renamed as the HERE business,
starting with the first quarter 2013.

The
following table sets forth a summary of the results for Location &
Commerce for the periods indicated, as well as the year-on-year and
sequential growth rates.

LOCATION & COMMERCE RESULTS SUMMARY

Q4/2012

Q4/2011

YoY Change

Q3/2012

QoQChange

Net sales (EUR millions)

278

306

-9%

265

5%

External net sales (EUR million)

204

200

2%

179

14%

Internal net sales (EUR million)

74

106

-30%

86

-14%

Non-IFRS gross margin (%)

82.0%

77.8%

80.4%

Non-IFRS operating expenses (EUR million)

189

206

-8%

175

8%

Non-IFRS operating margin (%)

14.4%

9.5%

14.0%

Net SalesIn
the fourth quarter 2012, the year-on-year increase in external Location
& Commerce net sales was primarily due to higher sales of map
content licenses to vehicle customers due to higher consumer uptake of
vehicle navigation systems. In the fourth quarter 2012, the sequential
increase in external Location & Commerce net sales was primarily due
to a higher consumer uptake of vehicle navigation systems as well as
seasonally higher sales to personal navigation devices customers.

In
the fourth quarter 2012, the year-on-year and sequential declines in
internal Location & Commerce net sales were due to declines in sales
to our Smart Devices business unit.

Gross MarginOn
a year-on-year basis, the increase in Location & Commerce non-IFRS
gross margin in the fourth quarter 2012 was primarily due to lower
deferred cost of sales associated with internal sales and a higher gross
margin within the vehicle segment, partially offset by lower sales to
personal navigation device customers.

On a
sequential basis, the increase in Location & Commerce non-IFRS gross
margin in the fourth quarter 2012 was primarily due to lower deferred
cost of sales associated with internal sales, a higher gross margin
within the vehicle segment, and seasonally higher sales to personal
navigation device customers.

Operating ExpensesLocation
& Commerce non-IFRS research and development expenses decreased 10%
year-on-year due to cost reductions. On a sequential basis, research
and development expenses increased 5% sequentially in the fourth quarter
2012 primarily due to increased project spending relating to software
development and map creation.

Location &
Commerce non-IFRS sales and marketing expenses decreased 8% year-on-year
primarily due to cost reduction actions. On a sequential basis, sales
and marketing expenses increased 22% sequentially in the fourth quarter
due to higher marketing costs and investments to establish the new HERE
brand.

Location & Commerce non-IFRS
administrative and general expenses increased 6% year-on-year and
increased 12% sequentially in the fourth quarter 2012. On a year-on-year
and sequential basis, the increase was primarily due to the higher use
of services provided by shared support functions.

Location
& Commerce non-IFRS other income and expense for the fourth quarter
2012 was approximately zero, compared to expense of EUR 3 million in
the fourth quarter 2011 and approximately zero in the third quarter
2012.

The
approximately flat sequential Location & Commerce non-IFRS
operating margin in the fourth quarter 2012 was primarily due to higher
net sales and gross margin, almost entirely offset by higher operating
expenses.

NOKIA SIEMENS NETWORKS

The
following table sets forth a summary of the results for Nokia Siemens
Networks for the periods indicated, as well as the year-on-year and
sequential growth rates.

NOKIA SIEMENS NETWORKS RESULTS SUMMARY

Q4/2012

Q4/2011

YoY Change

Q3/2012

QoQChange

Net sales (EUR million)

3 988

3 815

5%

3 501

14%

Non-IFRS gross margin (%)

36.0%

29.2%

32.2%

Non-IFRS operating expenses (EUR million)

843

943

-11%

797

6%

Non-IFRS operating margin (%)

14.4%

4.6%

9.2%

Net SalesThe
following table sets forth Nokia Siemens Networks net sales for the
periods indicated, as well as the year-on-year and sequential growth
rates, by geographic area.

NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA

EUR million

Q4/2012

Q4/2011

YoY Change

Q3/2012

QoQChange

Europe

1 058

1 272

-17%

918

15%

Middle East & Africa

388

394

-2%

325

19%

Greater China

416

438

-5%

313

33%

Asia-Pacific

1 176

909

29%

1 266

-7%

North America

426

293

45%

285

49%

Latin America

524

509

3%

394

33%

Total

3 988

3 815

5%

3 501

14%

The
year-on-year increase in Nokia Siemens Networks' net sales in the
fourth quarter 2012 was primarily due to higher sales of both
infrastructure equipment and services, partially offset by a decline in
sales of business areas not consistent with Nokia Siemens Networks'
strategic focus. On a regional basis, the year-on-year growth was
primarily due to higher net sales in Asia Pacific, most notably in Japan
which saw strong growth in sales of both infrastructure equipment and
services, as well as in North America which also saw strong growth in
sales of both infrastructure equipment and services. This was partially
offset by lower sales in Europe, most notably in Western Europe due to
declines in sales of both infrastructure equipment and services. In the
fourth quarter 2012, Nokia Siemens Networks net sales benefited from
non-recurring IPR income of approximately EUR 30 million.

The
sequential increase in Nokia Siemens Networks' net sales in the fourth
quarter 2012 was primarily due to higher sales of both services and
infrastructure equipment consistent with industry seasonality. On a
regional basis, the sequential growth was primarily due to higher net
sales in North America which saw strong growth in sales of both
infrastructure equipment and services, Latin America which saw strong
growth in sales of both infrastructure equipment and services and
Greater China which saw strong growth in sales of both services and
infrastructure equipment, partially offset by lower sales in Asia
Pacific, most notably Japan which saw a decline primarily in sales of
infrastructure equipment. In the fourth quarter 2012, Nokia Siemens
Networks net sales benefited from non-recurring IPR income of
approximately EUR 30 million.

Gross MarginOn
a year-on-year basis, the increase in Nokia Siemens Networks' non-IFRS
gross margin in the fourth quarter 2012 was due to favorable product and
regional mix towards higher gross margin revenues, particularly in
infrastructure equipment and to a lesser extent services, driven mainly
by Nokia Siemens Networks priority markets including Japan, Korea and
North America, partially offset by lower infrastructure equipment gross
margin in Europe. In addition, the year-on-year increase in Nokia
Siemens Networks non-IFRS gross margin was also due to structural cost
savings in its production overheads as part of its broader cost savings
targets.

On a sequential basis, the increase in
Nokia Siemens Networks' non-IFRS gross margin in the fourth quarter 2012
was due to favorable product and regional mix towards higher gross
margin revenues, in both services and infrastructure equipment, driven
mainly by Latin America, North America and Europe, partially offset by
Asia Pacific most notably in Japan. In addition, the sequential increase
in Nokia Siemens Networks non-IFRS gross margin was also due to
seasonally strong high gross margin software sales as well as structural
cost savings in its production overheads as part of its broader cost
savings targets.

Operating ExpensesNokia
Siemens Networks' non-IFRS research and development expenses decreased
10% year-on-year in the fourth quarter 2012 primarily due to
improvements in overall research and development efficiency.
Sequentially, Nokia Siemens Networks' non-IFRS research and development
expenses increased 7% primarily due to higher accrued incentive expenses
consistent with Nokia Siemens Networks' business performance in the
fourth quarter 2012, partially offset by cost control initiatives.

Nokia
Siemens Networks' non-IFRS administrative and general expenses
decreased 13% year-on-year in the fourth quarter 2012 primarily due to
structural cost savings. On a sequential basis, Nokia Siemens Networks
non-IFRS administrative and general expenses increased 5% in the fourth
quarter 2012, primarily due higher accrued incentive expenses consistent
with Nokia Siemens Networks' business performance in the fourth quarter
2012, as well as higher expense reallocation to other function costs,
which more than offset structural cost savings.

Nokia
Siemens Networks' non-IFRS other income and expense for the fourth
quarter 2012 was an expense of EUR 16 million, compared to income of EUR
5 million in the fourth quarter 2011 and expense of EUR 8 million in
the third quarter 2012. On both a year-on-year and sequential basis,
this was primarily due to changes in the doubtful account allowances.

Operating MarginThe
year-on-year increase in Nokia Siemens Networks non-IFRS operating
margin in the fourth quarter 2012 was primarily due to the higher gross
margin and higher net sales, and to a lesser extent, lower operating
expenses.

The sequential increase in Nokia
Siemens Networks non-IFRS operating margin in the fourth quarter 2012
was primarily due to the higher net sales and gross margin, partially
offset by higher operating expenses.

Strategy Update and Global Restructuring Program

NOKIA SIEMENS NETWORKS RESTRUCTURING SUMMARY

EUR (million)

Q4/2012 (approxi-mate)

Cumulative up to Q4/2012 (approxi-mate)

Q1/2013 (approxi-mate estimate)

2013 (approxi-mate estimate

2014 (approxi-mate estimate)

Total (approxi-mate estimate)

Restructuring related charges

257

1 300

Not provided

Not provided

Not provided

1 300

Restructuring related cash outflows

180

650

200

450

200

1 300

On
November 23, 2011, Nokia Siemens Networks announced its strategy to
focus on mobile broadband and services and the launch of an extensive
global restructuring program.

At the end of the
fourth quarter 2012, Nokia Siemens Networks had approximately 58 400
employees, a reduction of approximately 15 300 compared to fourth
quarter 2011, and approximately 2 200 compared to third quarter 2012.

Nokia
Siemens Networks now targets to reduce its non-IFRS annualized
operating expenses and production overheads by more than EUR 1 billion
by the end of 2013, compared to the end of 2011. Nokia Siemens Networks
previous target was to reduce its non-IFRS annualized operating expenses
and production overheads by EUR 1 billion by the end of 2013, compared
to the end of 2011. While these savings are expected to come largely
from organizational streamlining, the company will also target areas
such as real estate, information technology, product and service
procurement costs, overall general and administrative expenses, and a
significant reduction of suppliers in order to further lower costs and
improve quality.

By the end of the fourth quarter
of 2012, Nokia Siemens Networks had recorded cumulative restructuring
charges and other associated items of approximately EUR 1.3 billion
related to this restructuring program. In total we now expect cumulative
Nokia Siemens Networks' restructuring charges of approximately EUR 1.3
billion by the end of 2013, virtually all of which have now been
recognized. This is approximately EUR 100 million more than our previous
estimate.

By the end of the fourth quarter 2012,
Nokia Siemens Networks had cumulative restructuring related cash
outflows of approximately EUR 650 million related to this restructuring
program. Nokia Siemens Networks expects restructuring-related cash
outflows to be approximately EUR 200 million in the first quarter 2013,
approximately EUR 450 million for the full year 2013, and approximately
EUR 200 million for the full year 2014 related to this restructuring
program. This means that we also now expect total restructuring related
cash outflows to be approximately EUR 100 million more than what we
estimated earlier.

Nokia Siemens Networks is
focused on maintaining a strong financial position and liquidity
profile. Cash generation is a clear priority at Nokia Siemens Networks,
and the company intends to be self-funding in all aspects of its
operations.

Q4 OPERATING HIGHLIGHTS

NOKIA OPERATING HIGHLIGHTS-
Nokia completed its divestment of Vertu, the global leader in luxury
mobile phones, to EQT VI. As part of the transaction, approximately 1
000 employees have transferred with Vertu. Nokia retains a 10% minority
shareholding in Vertu.- Nokia entered into a new
patent license agreement with Research In Motion. The agreement results
in settlement of all existing patent litigation between the companies
and withdrawal of pending actions in the US, UK and Canada related to a
recent arbitration tribunal decision.- Nokia sold its
head office building in Espoo, Finland, to Finland-based Exilion and has
leased it back from Exilion on a long-term lease. The selling price was
EUR 170 million.- Nokia completed an offering of EUR
750 million of senior unsecured convertible bonds due 2017 convertible
into ordinary shares of Nokia Corporation. Nokia intends to use the net
proceeds of the offering to prudently manage its capital structure,
proactively address upcoming maturities while preserving existing pools
of liquidity and for general corporate purposes.

DEVICES & SERVICES OPERATING HIGHLIGHTSSMART DEVICES-
Nokia commenced shipments of the Nokia Lumia 920 and the Nokia Lumia
820, the first devices in Nokia's Windows Phone 8 range. The Lumia 920
is the flagship Windows Phone 8 smartphone, introducing the latest
advances in Nokia PureView imaging innovation. The Lumia 820 brings high
end smartphone innovation like wireless charging, super-sensitive touch
displays and new augmented reality experiences, starting with Nokia
City Lens, to a midrange price point.- Nokia and
Verizon Wireless commenced shipments of the Nokia Lumia 822, which
provides Verizon Wireless customers with the high-end smartphone
features of the Nokia Lumia 820 in a unique design package running on
America's largest 4G LTE network.- Nokia and China
Mobile announced the Lumia 920T, the first TD-SCDMA Windows Phone in
China. With optical image stabilization, world class location and
navigation services, and built-in wireless charging, the Lumia 920T is
the world's most innovative smartphone with the world's largest mobile
operator.- Nokia introduced the Nokia Lumia 620, the
third and most affordable in its range of Windows Phone 8 smartphones.
Alongside the flagship Nokia Lumia 920 and mid-range Nokia Lumia 820,
the Nokia Lumia 620 comes in a compact, colorful design and brings
Windows Phone 8 to a more youthful audience.

MOBILE PHONES-
Nokia introduced the Nokia Asha 205 and Nokia 206 in both single SIM
and dual SIM versions. Both devices reflect Nokia's heritage by
combining stylish design and long-lasting battery life. The Nokia Asha
205 and Nokia 206 are the first Mobile Phones devices to include Nokia's
exclusive Slam feature, which enables consumers to share multimedia
content such as photos and videos with nearby friends almost instantly.
Slam works with most Bluetooth-enabled mobile phones without the need to
pair devices, and without the recipient needing to also have Slam.-
Nokia commenced shipments of the Nokia Asha 308 and Asha 309, models
offering a fluid 'swipe' user interface and an open environment for
third-party application development.

LOCATION & COMMERCE OPERATING HIGHLIGHTS-
Location & Commerce introduced a new brand -HERE -for our
location-based products and services and has begun adopting the HERE
brand in the portfolio. HERE is the first location cloud to deliver the
world's best maps and location experiences across multiple screens and
operating systems. With the new brand, HERE, Nokia aims to inspire a new
generation of location services and devices that make the mobile
experience more personally significant for people everywhere. For
financial reporting purposes, the Location & Commerce business will
be renamed as the HERE business, starting with the first quarter 2013.-
To further extend its location services, Location & Commerce
launched a maps application for iOS under the HERE brand. Based on
HTML5, it includes offline capabilities, voice-guided walk navigation,
and public transport directions. The application is available for free
download from Apple's App Store.- Nokia announced a
strategic partnership with Mozilla to bring new location experiences to
the Firefox OS. Nokia plans to debut a mobile Web version of HERE Maps
for the new Firefox OS next year. The companies are working together to
give people the best mapping experience on Firefox OS. -
Nokia acquired earthmine inc. earthmine's reality capture and
processing technologies will become integral parts of the 3D map making
capabilities of HERE.- Nokia introduced LiveSight, a
technology based on a highly accurate, 3D map of the world. LiveSight
enables a precise and intuitive augmented reality experience. Nokia City
Lens, which was developed exclusively for Nokia Lumia devices and uses a
phone's camera viewfinder to make discovering the world as easy as
lifting up a phone, is the first application providing a
LiveSight-enabled experience.- Oracle developed a
built-in link between Oracle Fusion Middleware MapViewer and the Nokia
Location Platform (NLP). This link removes the barrier to customized map
integration and extends the benefits of global maps for business use to
Oracle users.

- Nokia's Location &
Commerce business continued to strengthen its portfolio of
location-based offerings for both Windows Phone 8 and Windows Phone 7.5:-
Location & Commerce brought its signature applications to the Nokia
Lumia range on Windows Phone 8, including true offline maps for Nokia
Maps and Nokia Drive+ (beta).- Location & Commerce
continued its support for Nokia's Lumia range on Windows Phone 7.5 with
new releases of Nokia Transport and Nokia Drive, extending the
availability of the My Commute feature in Nokia Drive from five to 26
countries. In addition, Location & Commerce also released a beta
update to Nokia City Lens for Lumia on Windows Phone 7.5, its
LiveSight-based augmented reality application, which turns the phone's
camera viewfinder into a new way to see information about restaurants,
shops, hotels and more overlaid onto the surfaces of buildings for the
most intuitive way to find hidden gems.- After
announcing in early 2012 that it is teaming with Groupon to bring local
and national deals to Nokia customers and integrating Groupon Now! deals
into Nokia Maps for the Lumia range in the third quarter, Location
& Commerce now also integrated Groupon Now! deals into its maps
desktop offering on here.com.

NOKIA SIEMENS NETWORKS OPERATING HIGHLIGHTS-
Nokia Siemens Networks continued its mobile broadband deal momentum,
adding commercial LTE deals in the fourth quarter, including: delivering
a large, multi-city, TD-LTE deployment for China Mobile; preparing O2's
network in the UK to deliver LTE services across London and the
south-east of England, ahead of an anticipated rapid launch of 4G in
early 2013; completing the first 4G pilot with TD-LTE technology in
Southern Europe for COTA, a new player in Spanish telecoms, and Wimax
Online; and helping Vodacom become the first operator to introduce voice
and SMS alongside LTE in South Africa.- Nokia Siemens
Networks provided GSM and 3G mobile broadband infrastructure and
services in Central and East Java, Sumatra, and Kalimantan for Indosat
in Indonesia; and deployed Wide Band Adaptive Multi-Rate (WB-AMR)
software for Smart Communications 3G network in Mega Manila in the
Philippines, providing high-definition (HD) voice services to
subscribers. - Nokia Siemens Networks combined three
powerful WCDMA software features with the introduction of its Liquid
Radio WCDMA software suite to deliver faster data uploads and extract
the full benefit from network resources and smartphone capabilities,
helping operators improve customer satisfaction and cut churn while
increasing revenue from greater 3G availability. Nokia Siemens Networks
also launched a new package of services to ensure operators have the
most profitable blend of macro and small cells for mobile broadband, as
well as a new second-generation 3G femto access point that provides
mobile coverage in the home or small office. - Nokia
Siemens Networks' Flexi Zone was awarded the 'Best of 4G award' at 4G
World in Chicago, in the Radio Access Network (RAN) and Small Cell
Technology Product category for its RAN & small cell technology
product, based on the company's Liquid Radio architecture, recognizing
mobile broadband innovative design, small cell technology and approach.
In a recent proof of concept project based on Liquid Core architecture,
Nokia Siemens Networks and a leading global operator jointly
demonstrated that core virtualization and cloud management are viable
technologies for deployment by operators. - In
Services, Nokia Siemens Networks launched an industry-first capability
center - Service Operations and Management solution - which combines
insights related to service performance with operations functions to
enable operators to manage mobile broadband services and tackle service
degradation before subscribers experience poor quality. -
Nokia Siemens Networks enhanced its award-winning Customer Experience
Management (CEM) on Demand portal by adding three new software content
packs and related services to help operators pinpoint actionable
problems on internet-based maps in seconds and rank the individual
customer perception of any problem they experience, in addition to
providing trends in service use, network performance and customer
experience. - Guangdong Mobile, China Mobile's largest
subsidiary, selected Nokia Siemens Networks' Customer Experience
Management engine Serve at Once Intelligence (SAI) customer and business
analysis suite to boost subscriber loyalty and revenue through analysis
of real time customer insights. In December, Nokia Siemens Networks
provided a unified network and service management dashboard solution as
part of its CEM portfolio, including a video wall bigger than a tennis
court, for Bharti Airtel in Gurgaon, India, to give the operator a
complete network view and ensure the best possible service quality and
user experience. - Nokia Siemens Networks continued to
drive towards its strategic focus on Mobile Broadband, announcing it
had reached an agreement to sell its Optical Networks business to Marlin
Equity Partners and its Business Support Systems business to Redknee.
It also completed the divestment of the assets of the non-core IPTV
business to Belgacom and Accenture.

NOKIA IN JANUARY -DECEMBER 2012The following discussion is of Nokia's reported results. Comparisons are given to 2011 results, unless otherwise indicated.See
note 5 to our Summary Financial Information table above concerning our
current operational and reporting structure which we adopted during
2011.

In
2012, Europe accounted for 29% (31%) of our net sales, Asia-Pacific 27%
(23%), Greater China 10% (17%), Middle East & Africa 14% (14%),
Latin America 13% (11%) and North America 7% (4%). The 10 markets in
which we generated the greatest net sales in 2012 were, in descending
order of magnitude, China, India, Japan, the United States, Brazil,
Germany, Russia, the United Kingdom, Indonesia and Italy together
representing approximately 52% of total net sales in 2012. In
comparison, the 10 markets in which we generated the greatest net sales
in 2011 were China, India, Brazil, Russia, Germany, Japan, the United
States, the United Kingdom, Italy and Spain, together representing
approximately 52% of total net sales in 2011.

Our
research and development expenses were EUR 4.8 billion in 2012,
compared to EUR 5.6 billion in 2011. Research and development costs
represented 15.8% of our net sales in 2012 (14.4%). Research and
development expenses included purchase price accounting items and other
special items of EUR 378 million in 2012 (EUR 412 million).

In
2012, our selling and marketing expenses were EUR 3.2 billion, compared
to EUR 3.8 billion in 2011. Selling and marketing expenses represented
10.6% of our net sales in 2012 (9.7%). Selling and marketing expenses
included purchase price accounting items and other special items of EUR
314 million in 2012 (EUR 422 million).

Administrative
and general expenses were EUR 1.0 billion in 2012, compared to EUR 1.1
billion in 2011. Administrative and general expenses were equal to 3.2%
of our net sales in 2012 (2.8%). Administrative and general expenses
included no special items in 2012 (EUR 1 million in 2011).

Financial
income and expenses, net, was an expense of EUR 340 million in 2012
(EUR 102 million). The higher net expense in 2012 was primarily driven
by higher net costs related to hedging our cash balances and unfavorable
fluctuations in certain foreign currency exchange rates.

Loss
before tax was EUR 2.6 billion in 2012 (loss of EUR 1.2 billion). Loss
was EUR 3.8 billion (loss of EUR 1.5 billion), based on a loss of EUR
3.1 billion (loss of EUR 1.2 billion) attributable to equity holders of
the parent and a loss of EUR 0.7 billion (loss of EUR 0.3 billion)
attributable to non-controlling interests. Earnings per share decreased
to EUR -0.84 (diluted and basic), compared to EUR -0.31 (diluted and
basic).

The following chart sets out Nokia Group's
cash flow for the fiscal years 2012 and 2011 and financial position at
the end of each of those years, as well as the year-on-year growth
rates.

Year-on-year,
net cash and other liquid assets decreased by EUR 1.2 billion in 2012,
primarily due to cash outflows related to restructuring of approximately
EUR 1.5 billion, the payment of the dividend of approximately EUR 750
million in 2012 and cash outflows related to net financial expenses and
taxes as well as capital expenditures. This was partially offset by
positive overall net cash from operating activities, excluding cash
outflows related to restructuring, net financial expenses and taxes, as
well as cash flows related to the receipt of quarterly platform support
payments from Microsoft (which commenced in the fourth quarter 2011).

In
2012, Nokia Siemens Networks' contribution to net cash from operating
activities was approximately EUR 1.6 billion, primarily due to net
working capital changes. At the end of 2012, Nokia Siemens Networks'
contribution to the Nokia gross cash was EUR 2.4 billion and
contribution to Nokia's net cash was EUR 1.3 billion.

The
following discussion of Nokia's three businesses -Devices &
Services, Location & Commerce and Nokia Siemens Networks -includes
information on a non-IFRS, or underlying business performance, basis.
Non-IFRS results exclude special items for all periods. In addition,
non-IFRS results exclude intangible asset amortization, other purchase
price accounting related items and inventory value adjustments arising
from i) the formation of Nokia Siemens Networks and ii) all business
acquisitions completed after June 30, 2008. See
note 1 to our Summary Financial Information table above for information
about our underlying non-IFRS results.

Devices & Services

The
following chart sets out a summary of the results for our Devices &
Services business and the year-on-year growth rates for the fiscal
years 2012 and 2011.

DEVICES & SERVICES RESULTS SUMMARY

2012

2011

YoY Change

Net sales (EUR million)1

15 686

23 943

-34%

Mobile device volume (million units)

335.6

417.1

-20%

Mobile device ASP (EUR)

47

57

-18%

Reported gross margin (%)

21.3%

27.7%

Non-IFRS gross margin (%)

21.3%

27.7%

Reported operating expenses (EUR million)

4 001

4 983

-20%

Non-IFRS operating expenses (EUR million)

3 997

4 974

-20%

Reported operating margin (%)

-7.0%

3.7%

Non-IFRS operating margin (%)

-4.5%

7.0%

Note 1: Includes IPR income recognized in Devices & Services Other net sales.

Net Sales

The
following chart sets out the net sales for our Devices & Services
business and year-on-year growth rates by geographic area for the fiscal
years 2012 and 2011. The IPR income referred to in the paragraph above
has been allocated to the geographic areas contained in this chart.

DEVICES & SERVICES NET SALES BY GEOGRAPHIC AREA

EUR million

2012

2011

YoY Change

Europe

4 643

7 064

-34%

Middle East & Africa

2 827

4 098

-31%

Greater China

1 610

5 063

-68%

Asia-Pacific

3 811

4 896

-22%

North America

453

354

28%

Latin America

2 342

2 468

-5%

Total

15 686

23 943

-34%

The
decline in Devices & Services net sales in 2012 resulted from lower
volumes in both Smart Devices and Mobile Phones as well as a lower ASP
in Mobile Phones, partially offset by a higher ASP in Smart Devices.
Devices & Services Other net sales decreased in 2012 due to lower
non-recurring IPR income, the divestment of Vertu during the fourth
quarter 2012 and lower spare parts sales.

At a constant currency, Devices & Services net sales would have decreased 36% compared to 2011.

Smart
Devices continued to transition as Symbian volumes decreased
sequentially every quarter in 2012. Lumia device volumes grew in the
first half of 2012 by expanding geographical distribution as well as new
product launches, but were negatively affected in the third quarter
2012 by product transitions. In the fourth quarter 2012, Smart Devices
net sales grew sequentially as Nokia started shipping new Lumia devices,
although volumes were adversely affected by supply constraints as we
ramped up our production capacity, particularly related to the Lumia
920. Smart Devices shipped a total of 13.4 million Lumia devices in
2012.

During the first half of 2012, Mobile Phones
was negatively affected by aggressive price competition and the lack of
affordable full touch devices. Towards the end of the second quarter
2012 Mobile Phones introduced affordable Asha full touch smartphones and
sold 15.8 million units in the second half 2012.

Our
overall Devices & Services net sales in 2012 benefited from the
recognition in Devices & Services Other of approximately EUR 50
million (EUR 450 million in 2011) of non-recurring IPR income. During
the last two decades, we have invested approximately EUR 50 billion in
research and development and built one of the wireless industry's
strongest and broadest IPR portfolios, with approximately 10 000 patent
families. Nokia is a world leader in the development of handheld device
and mobile communications technologies, which is also demonstrated by
our strong patent position. Within Devices & Services Other, we
estimate that our current annual IPR income run-rate is approximately
EUR 0.5 billion.

VolumeThe
following chart sets out the mobile device volumes for our Devices
& Services business and year-on-year growth rates by geographic area
for the fiscal years 2012 and 2011.

DEVICES & SERVICES MOBILE DEVICE VOLUMES BY GEOGRAPHIC AREA

million units

2012

2011

YoY Change

Europe

67.3

87.8

-23%

Middle East & Africa

81.7

94.6

-14%

Greater China

27.5

65.8

-58%

Asia-Pacific

113.5

118.9

-5%

North America

2.2

3.9

-44%

Latin America

43.4

46.1

-6%

Total

335.6

417.1

-20%

On
a year-on-year basis, the decline in our total Devices & Services
volumes in 2012 was due to lower volumes in both Smart Devices and
Mobile Phones discussed below.

Gross MarginOn
a year-on-year basis, the decline in our Devices & Services
non-IFRS gross margin in 2012 was due to gross margin declines in Smart
Devices and to a lesser degree in Mobile Phones and Devices &
Services Other.

Operating ExpensesDevices
& Services non-IFRS operating expenses decreased 20% year-on-year
in 2012. On a year-on-year basis, operating expenses related to Smart
Devices decreased 32% in 2012, where Mobile Phones remained
approximately on the same level. In addition to the factors described
below, the year-on-year changes were affected by the proportionate
allocation of operating expenses being affected by the relative mix of
sales and gross profit performance between Mobile Phones and Smart
Devices. This resulted in higher and lower relative allocations to
Mobile Phones and Smart Devices, respectively.

Devices
& Services non-IFRS research and development expenses decreased 24%
year-on-year in 2012 due to declines in Smart Devices and Devices &
Services Other research and development expenses. The decreases in
research and development expenses were due primarily to a focus on
priority projects and cost controls as well as business divestments.

Devices
& Services non-IFRS sales and marketing expenses decreased 15%
year-on-year in 2012 primarily due to lower overall business activity,
improved efficiency in general marketing activities and business
divestments.

Devices & Services non-IFRS
administrative and general expenses decreased 19% year-on-year in 2012,
primarily due structural cost savings as well as business divestments.

In
2012, Devices & Services non-IFRS other income and expense had a
negative year-on-year impact on profitability. Reported other income and
expense was significantly less negative in 2012. Restructuring charges
of EUR 550 million and related impairments of EUR 30 million, a benefit
from cartel claim settlements of EUR 56 million, a net gain from the
sale of a real estate of EUR 79 million and a net gain from the
divestment of the Vertu business of EUR 52 million were recognized in
Devices & Services Other in 2012. Restructuring charges of EUR 456
million, impairment of assets of EUR 90 million, Accenture deal
consideration of EUR 251 million, impairment of shares in an associated
company of EUR 41 million and a benefit from a cartel claim settlement
of EUR 49 million were recognized in Devices & Services Other in
2011.

Cost Reduction Activities and Planned Operational AdjustmentsNokia
continues to target to reduce its Devices & Services non-IFRS
operating expenses to an annualized run rate of approximately EUR 3.0
billion by the end of 2013.

On June 14, 2012, we
announced targeted investments in key growth areas, operational changes
and significantly increased our cost reduction target. The measures
included the closure of Nokia's manufacturing facility in Salo, Finland
as well as the closure of Nokia's research and development facility in
Ulm, Germany. In addition, Nokia also focused its sales and marketing
activities and streamlined its IT, corporate and support functions to
align with the sharpened strategy.

As of December
31, 2012, we had recognized cumulative net charges in Devices &
Services of approximately EUR 1.4 billion related to restructuring
activities, which included restructuring charges and associated
impairments. While the total extent of the restructuring activities is
still to be determined, we currently anticipate cumulative charges in
Devices & Services of approximately EUR 1.6 billion before the end
of 2013. We also expect the total cash outflows related to our Devices
& Services restructuring activities to be approximately EUR 1.4
billion.

Smart Devices

The
following chart sets out a summary of the results for our Smart Devices
business unit for the periods indicated, as well as the year-on-year
growth rates.

SMART DEVICES RESULTS SUMMARY

2012

2011

YoY Change

Net sales (EUR million)1

5 446

10 820

-50%

Smart Devices volume (million units)

35.1

77.3

-55%

Smart Devices ASP (EUR)

155

140

11%

Gross margin (%)

8.8%

23.7%

Operating expenses (EUR million)2

2 018

2 974

-32%

Contribution margin (%)2

-28.6%

-3.8%

Note 1: Does not include IPR income. IPR income is recognized in Devices & Services Other net sales.Note 2:
The year-on-year decrease in operating expenses was affected by the
proportionate allocation of operating expenses being affected by the
relative mix of sales and gross profit performance between Mobile Phones
and Smart Devices, resulting in lower relative allocations to Smart
Devices in 2012. Accordingly, 2012 operating expenses are not directly
comparable to 2011 operating expenses.

VolumeThe
year-on-year decrease in our Smart Device volumes in 2012 was driven by
the strong momentum of competing smartphone platforms relative to our
Symbian devices. On a geographical basis, the decrease in volumes was
due to lower volumes in Greater China, Europe, Asia Pacific, Middle East
&Africa and Latin America, partially offset by slightly higher
volumes in North America.

Average Selling PriceThe
year-on-year increase in our Smart Devices ASP in 2012 was primarily
due to a positive mix shift towards sales of our Lumia devices which had
a higher ASP, a positive impact related to deferred revenue on services
sold in combination with our devices as well as the net positive impact
related to foreign currency fluctuations, partially offset by general
price erosion and our pricing actions.

Gross MarginThe
year-on-year decline in our Smart Devices gross margin in 2012 was
primarily due to greater price erosion than cost erosion due to the
competitive environment, inventory related allowances of EUR 220 million
in the second quarter 2012 and EUR 120 million in the third quarter
2012, higher fixed costs per unit because of lower sales volumes, and a
negative product mix shift towards lower gross margin devices.

Mobile Phones

The
following chart sets out a summary of the results for our Mobile Phones
business unit and year-on-year growth rates for the fiscal years 2012
and 2011.

MOBILE PHONES RESULTS SUMMARY

2012

2011

YoY Change

Net sales (EUR million)1

9 436

11 930

-21%

Mobile Phones volume (million units)

300

340

-12%

Mobile Phones ASP (EUR)

31

35

-11%

Gross margin (%)

23.4%

26.1%

Operating expenses (EUR million)2

1 661

1 640

1%

Contribution margin (%)2

5.6%

12.4%

Note 1: Does not include IPR income. IPR income is recognized in Devices & Services Other net sales.Note 2:
The year-on-year decrease in operating expenses was affected by the
proportionate allocation of operating expenses being affected by the
relative mix of sales and gross profit performance between Mobile Phones
and Smart Devices, resulting in higher relative allocations to Mobile
Phones in 2012. Accordingly, 2012 operating expenses are not directly
comparable to 2011 operating expenses.

VolumeThe
year-on-year decline in our Mobile Phones volumes in 2012 was due to
the challenging competitive environment and market environment, which
negatively affected our volumes across the Mobile Phones portfolio. In
particular, low end smartphones powered by the Android operating system
proliferated at lower price points throughout 2012. During the second
half of 2012, Mobile Phones started shipping Asha full touch
smartphones, which improved the competitiveness of our higher end Mobile
Phones product portfolio. During the second half of 2012 Mobile Phones
shipped 15.8 million Asha full touch smartphones.

Average Selling PriceThe
year-on-year decline in our Mobile Phones ASP in 2012 was primarily due
to a higher proportion of sales of lower priced devices and general
price erosion.

Gross MarginThe
year-on-year decline in our Mobile Phones gross margin in 2012 was
primarily due to a higher proportion of sales of lower gross margin
devices as well as the net negative impact related to foreign currency
fluctuations.

Location & Commerce

On
November 13, 2012, Nokia introduced HERE, the new brand for its
location and mapping service. For financial reporting purposes, the
Location & Commerce business will be renamed as the HERE business,
starting with the first quarter 2013.

The
following chart sets out a summary of the results for Location &
Commerce and year-on-year growth rates for the fiscal years 2012 and
2011.

Operating ExpensesLocation
& Commerce non-IFRS research and development expenses decreased 14%
primarily driven by a focus on cost controls, lower project spending
and a shift of research and development operating expenses to cost of
sales as a result of the divestiture of the media advertising business.

Location & Commerce non-IFRS
administrative and general expenses increased 13% primarily driven by
higher use of services provided by shared support functions.

Nokia Siemens Networks

Nokia
Siemens Networks completed the acquisition of Motorola Solutions'
networks assets on April 30, 2011. Accordingly, the results of Nokia
Siemens Networks for 2012 are not directly comparable to 2011.

The
following chart sets out a summary of the results for Nokia Siemens
Networks and year-on-year growth rates for fiscal years 2012 and 2011.

NOKIA SIEMENS NETWORKS RESULTS SUMMARY

2012

2011

YoY Change

Net sales (EUR million)

13 779

14 041

-2%

Reported gross margin (%)

30.3%

27.4%

Non-IFRS gross margin (%)

30.7%

27.4%

Reported operating expenses (EUR million)

3 678

4 030

-9%

Non-IFRS operating expenses (EUR million)

3 413

3 662

-7%

Reported operating margin (%)

-5.8%

-2.1%

Non-IFRS operating margin (%)

5.6%

1.6%

Net SalesThe
following chart sets out Nokia Siemens Networks net sales and
year-on-year growth rates, by geographic area for fiscal years 2012 and
2011.

NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA

EUR millions

2012

2011

YoY Change

Europe

3 896

4 469

-13%

Middle East & Africa

1 287

1 391

-7%

Greater China

1 278

1 465

-13%

Asia-Pacific

4 347

3 848

13%

North America

1 294

1077

20%

Latin America

1 677

1 791

-6%

Total

13 779

14 041

-2%

The
year-on-year decline in Nokia Siemens Networks' net sales was primarily
due to the decline in sales of business areas not consistent with Nokia
Siemens Networks' strategic focus and lower infrastructure equipment
sales, partially offset by higher services net sales. On a full year
basis, services represented slightly more than 50% of Nokia Siemens
Networks' net sales.

Gross MarginThe
increase in Nokia Siemens Networks non-IFRS gross margin in 2012 was
primarily due to the better gross margin in both infrastructure
equipment and services. Within infrastructure equipment the increase was
primarily due to favorable region and product mix consistent with Nokia
Siemens Networks' strategy to focus on mobile broadband. Within
services, the increase was primarily due to structural cost actions and
efforts to align the services business with the focused strategy.

Operating ExpensesNokia
Siemens Networks' non-IFRS research and development expenses decreased
5% year-on-year in 2012 primarily due to structural cost saving actions
and overall research and development efficiency.

Nokia Siemens Networks' non-IFRS
other income decreased to an expense year-on-year in 2012 due primarily
to due to changes in the doubtful account allowances. Reported other
income and expense for 2012 was an expense of EUR 1 290 million. The
year-on-year increase of the expense was mainly driven by increased
restructuring and associated charges.

Strategy Update and Global Restructuring ProgramOn
November 23, 2011 Nokia Siemens Networks announced its strategy to
focus on mobile broadband and services and the launch of an extensive
global restructuring program.

At the end of 2012,
Nokia Siemens Networks had approximately 58 400 employees, a reduction
of approximately 15 300 compared to end of 2011.

Nokia
Siemens Networks now targets to reduce its non-IFRS annualized
operating expenses and production overheads by more than EUR 1 billion
by the end of 2013, compared to the end of 2011. Nokia Siemens Networks
previous target was to reduce its non-IFRS annualized operating expenses
and production overheads by EUR 1 billion by the end of 2013, compared
to the end of 2011. While these savings are expected to come largely
from organizational streamlining, the company will also target areas
such as real estate, information technology, product and service
procurement costs, overall general and administrative expenses, and a
significant reduction of suppliers in order to further lower costs and
improve quality.

During 2012, Nokia Siemens
Networks recognized restructuring charges and other associated items of
EUR 1.3 billion related to this restructuring program, resulting in
cumulative charges of approximately EUR 1.3 billion. In total we now
expect cumulative Nokia Siemens Networks restructuring charges of
approximately EUR 1.3 billion by the end of 2013, virtually all of which
have now been recognized. By the end of 2012, Nokia Siemens Networks
had cumulative restructuring related cash outflows of approximately EUR
650 million related to this restructuring program. Nokia Siemens
Networks expects restructuring-related cash outflows to be approximately
EUR 450 million for the full year 2013, and approximately EUR 200
million for the full year 2014 related to this restructuring program.

Nokia
Siemens Networks is focused on maintaining a strong financial position
and liquidity profile. Cash generation is a clear priority at Nokia
Siemens Networks, and the company intends to be self-funding in all
aspects of its operations.

FULL YEAR 2012 OPERATING HIGHLIGHTS

NOKIA OPERATING HIGHLIGHTS-
Nokia outlined a range of actions -planned or since completed -aimed at
sharpening its strategy, improving its operating model and returning
the company to profitable growth. The measures included:-
Reductions within certain research and development projects, resulting
in the closure of Nokia's facilities in Ulm, Germany and Burnaby,
Canada;- The transfer of device assembly from our
production facilities in Komarom in Hungary and Reynosa in Mexico to
Nokia facilities in Asia, where the majority of component suppliers are
based. The Komarom and Reynosa facilities are now focusing on smartphone
product customization. - The consolidation of certain
manufacturing operations, resulting in the closure of its manufacturing
facility in Salo, Finland;- Nokia, and De' Longhi
SpA, a global leader in household appliances, agreed terms for De'
Longhi to acquire Nokia's production facility in Cluj, Romania.- Focusing of marketing and sales activities, including prioritizing key markets; - Streamlining of corporate and support functions.

Since
the end of 2012, Nokia has also announced a range of planned changes to
streamline its IT organization. Nokia believes these changes will
increase operational efficiency and reduce operating costs, creating an
IT organization appropriate for Nokia's current size and scope. As part
of the planned changes, Nokia plans to transfer certain activities and
up to 820 employees to HCL Technologies and TATA Consultancy Services.- There were various changes in the Nokia Leadership Team during 2012. Changes included:-
Marko Ahtisaari was appointed Executive Vice President of Design and
member of the Nokia Leadership Team as from February 1, 2012. -
Juha Putkiranta was appointed Executive Vice President of Operations
and member of the Nokia Leadership Team as from July 1, 2012.-
Timo Toikkanen was appointed Executive Vice President of Mobile Phones
and member of the Nokia Leadership Team as from July 1, 2012.-
Chris Weber was appointed Executive Vice President of Sales and
Marketing and member of the Nokia Leadership Team as from July 1, 2012.

Further, during 2012, the following members resigned from the Nokia Leadership Team:-
Jerri DeVard, formerly Executive Vice President and Chief Marketing
Officer, resigned from the Nokia Leadership Team effective as from July
1, 2012.- Colin Giles, formerly Executive Vice
President of Sales, resigned from the Nokia Leadership Team effective as
from July 1, 2012. - Mary T. McDowell, formerly
Executive Vice President of Mobile Phones resigned from the Nokia
Leadership Team effective as from July 1, 2012.-
Niklas Savander, formerly Executive Vice President of Markets resigned
from the Nokia Leadership Team effective as from July 1, 2012.- Esko Aho, formerly Executive Vice President of Corporate Relations and Responsibility resigned from the Nokia Leadership Team.

-
Nokia completed the acquisition of all technologies and intellectual
property from Scalado AB to strengthen Nokia's leading position in
mobile imaging. As part of the transaction, approximately 50 world-class
imaging specialists transferred to Nokia.- Nokia divested Vertu, its luxury mobile phones business to EQT VI, a European private equity firm. - Nokia started development of a new manufacturing facility in Vietnam to serve the feature phone market.- Nokia was again selected as a component of the Dow Jones Sustainability World Index (DJSI) and Dow JonesSustainability Europe Index in the DJSI 2012 Review.-
Nokia was included by the Carbon Disclosure Project (CDP) in the Carbon
Disclosure Leadership Index and the Carbon Performance Leadership
Index, receiving recognition both for its disclosure of climate change
information and the action it is taking to reduce its emissions.

DEVICES & SERVICES OPERATING HIGHLIGHTSSMART DEVICES-
Nokia continued to expand the breadth and depth of its Nokia Lumia
range of Windows Phone 7-based smartphones and brought the range to new
markets, including China and the United States. - In
September 2012, Nokia launched its first products on Windows Phone 8,
the latest generation of the Windows Phone platform. Nokia started
selling the first products running Windows Phone 8 -the flagship Nokia
Lumia 920 and the mid-range Nokia Lumia 820 - in select markets
including China, Germany, the United Kingdom and the United States Nokia
has also launched in markets such as India as well as introduced the
Nokia 620 in select markets, with Lumia smartphones now available in
more than 90 markets around the world. Nokia's first Windows Phone 8
products showcase the best of Windows Phone 8, which for the first time
shares many core technologies with the wider Windows ecosystem. Windows
Phone 8 also introduced multi-core processor support, NFC (near field
communication) technology, and support for higher screen resolutions, as
well as increased language support and new capabilities in imaging and
application.- Nokia continued to support the growth of
the Windows Phone ecosystem. The number of applications in the Windows
Phone Marketplace grew to more than 125 000 by the end of 2012, up from
more than 50 000 at the start of the year.- During our
transition to Windows Phone through 2012, we continued to ship devices
based on Symbian. The Nokia 808 PureView, a device which showcases our
imaging capabilities and which came to market in mid-2012, was the last
Symbian device from Nokia.- Nokia announced a range of
wireless charging accessories and partnerships. The Fatboy Recharge
Pillow provides an alternative way to charge the Lumia 920 and Lumia 820
wirelessly, while HARMAN'S JBL brand introduced the JBL PowerUP, a
wireless charging docking station with high quality audio in retro
styling and the JBL PlayUp for high quality portable audio. Nokia also
agreed with Virgin Atlantic to put wireless charging stations in its
London Heathrow Clubhouse lounge and with Coffee Bean & Tea Leaf to
put charging plates on tables in some of their cafés.-
Nokia announced the launch of Nokia Music in the United States, further
expanding the number of markets in which the free music streaming
service is now available. Nokia Music is a free mobile experience
exclusive to Nokia Lumia handsets, providing consumers with a simple and
delightful way to discover and enjoy music.

MOBILE PHONES-
Mobile Phones continued to expand Nokia's Asha range of products with
technological and design innovations, including launching full touch
models such as the Asha 308 and Asha 309. These two models offer a fluid
'swipe' user interface and an open environment for third-party
application development -characteristics which helped earn the complete
Asha touch range full smartphone classification from global market
research companies and analysts such as GfK. - Nokia
introduced the Nokia 206 in both a single and dual SIM version. The
Nokia 206 includes Nokia's exclusive Slam feature, which enables
consumers to share multimedia content like photos and videos with nearby
friends almost instantly. Slam works with most Bluetooth-enabled mobile
phones without the need to pair devices, and without the recipient
needing to also have Slam.- Nokia unveiled Nokia
Life+, the latest evolution of its widely-used Nokia Life service. Nokia
Life+ is a Web application, which will provide millions of people with
valuable information on education, health and "infotainment" topics.
Nokia Life+ will be supported by the Nokia Asha 308 and Nokia Asha 309
smartphones alongside a wide range of Nokia mobile phones.-
The Nokia Xpress browser, Nokia's cloud-accelerated browser for Series
40 devices, continued to grow rapidly with support for 38 devices in 87
languages and more than 200 countries. The Nokia Xpress browser is the
first of its kind to support web apps, and since the release of the SDK
in 2011, developer support has continued to grow.

LOCATION & COMMERCE OPERATING HIGHLIGHTS-
Nokia introduced a new brand -HERE -for our location-based products and
services and has begun adopting the HERE brand in the portfolio. HERE
is the first location cloud to deliver the world's best maps and
location experiences across multiple screens and operating systems. - To further extend its location services, Nokia launched a maps application for iOS under the HERE brand. - Nokia announced a strategic partnership with Mozilla to bring new location experiences to the Firefox OS. -
Nokia acquired earthmine inc. earthmine's reality capture and
processing technologies will become integral parts of the 3D map making
capabilities of HERE,- Nokia introduced LiveSight, a
technology based on a highly accurate, 3D map of the world. LiveSight
provides a precise and intuitive augmented reality experience.-
Location & Commerce continued to grow the Nokia Location Platform
(NLP), an advanced location platform which offers numerous opportunities
upon which third parties can build. During the year, among others,
Amazon became an NLP licensee for maps and geocoding and Ford's research
organization selected the NLP to leverage Nokia's high-quality global
location content as well as scalable cloud services and APIs. -
As part of its commitment to strengthen the Windows Phone ecosystem,
Nokia integrated the NLP into Windows Phone 8 OS to power location-based
experiences built for Windows Phone 8, including access to offline maps-
Location & Commerce agreed a partnership with Groupon to bring
local and national deals to Nokia customer and released a new version of
Nokia Maps for the Lumia range that integrates Groupon Now! deals into
the app. - Location & Commerce introduced My
Commute, a new feature of Nokia Drive that learns people's driving
preferences and uses information about the latest traffic conditions to
help people choose between the different routes they usually take to get
to the places they travel most.- Location &
Commerce brought Nokia City Lens, an augmented reality application, to
the Nokia Lumia smartphone range and continued to update it throughout
the year.- Location & Commerce released Nokia
Transport, a mobile application for the Lumia range providing
underground, tram, suburban train and bus directions for more than 500
cities in 46 countries in a convenient way, and further updated the
application during the year.- Location & Commerce
continued to build partnerships with a number of major industry players,
particularly in the area of automotive-grade maps content and
solutions. We are providing content to partners including Audi, BMW
Chrysler, Dacia, ESRI, Ford, Garmin, Hyundai, Kia, Mercedes, Nikon,
Pioneer, Scania, Toyota and Volkswagen.- In indoor
mapping, Location & Commerce continued to steadily increase its
coverage of venues and buildings around the world and now covers 5 100
venues and altogether 18 000 buildings in 40 countries.

NOKIA SIEMENS NETWORKS OPERATING HIGHLIGHTS-
Nokia Siemens Networks added significant commercial LTE deals during
2012, including; a major contract with SOFTBANK MOBILE Corp. in Japan to
upgrade its mobile broadband capacity across the country, supplying,
deploying and integrating its HSPA+ (3G) and FDD LTE (4G) networks;
deploying the world's first multi-technology, multi-vendor
self-organizing 3G and 4G mobile networks for KDDI, also in Japan; and
supporting T-Mobile's 4G network evolution plan with the modernization
of its GSM, HSPA+ core and radio access infrastructure in key markets in
the USA to improve existing voice and data coverage.-
Nokia Siemens Networks had a total of 77 LTE deals by the 2012 year
end, with other mobile broadband deals including with: Bharti Airtel in
India; Telkomsel in Indonesia; KT in Korea; Singapore's StarHub; Tele2
in Estonia, Latvia and Lithuania; Hrvatski Telekom in Croatia; T-Mobile
and Orange in Poland; Polkomtel in Poland; Si.mobil in Slovenia; COTA
and Wimax Online in Spain; Zain KSA in Saudi Arabia; TOT in Thailand;
Optus in Australia; Mobile TeleSystems in Russia; O2 in the UK; Vodacom
in South Africa; Saudi Telecom Company; and China Mobile. -
Nokia Siemens Networks demonstrated its commitment to staying at the
forefront of mobile broadband innovation with the opening of a mobile
broadband testing and development facility which opened in Silicon
Valley in the United States. In other LTE technology developments,
Nokia Siemens Networks: launched its "FlexiZone" approach to mobile
broadband coverage, which will deliver faster and more flexible 4G
across areas with a very high user density more efficiently and cost
effectively; and expanded its portfolio, to enable smooth 4G rollouts
using the 'Digital Dividend' in the Asia Pacific region, Latin America
and other parts of the world.- Nokia Siemens Networks
also launched a new CDMA base station, bringing the benefits of its
globally recognized Flexi Multiradio Base Station platform to CDMA
operators whilst reducing base station operating costs by up to 70%, and
with 4G upgrade capability underlining Nokia Siemens Networks'
commitment to mobile broadband technology evolution. -
Nokia Siemens Networks unveiled its 'Intelligent IP Edge', the world's
most advanced network gateway that enables operators to deliver a better
mobile broadband experience and reduce running costs using Nokia
Siemens Networks' Liquid Net approach. Nokia Siemens Networks and
Juniper Networks announced the launch of the "Integrated Packet
Transport Network", addressing the need for service providers to
simplify network architecture and giving operators more flexibility in
their transport networks in a cost effective way, reflecting Nokia
Siemens Networks Liquid Net approach to transforming networks to cope
with unpredictability and increasing network demand. -
Nokia Siemens Networks extended its comprehensive small cells portfolio
with the launch of an enhanced range of picocell base stations and 3G
Femto access points, and announced a US-based trial of its Hot Zone
approach for increasing network capacity in the Chicago area. -
The launch of the Customer Experience Management (CEM) on Demand portal
in the first quarter allowed Nokia Siemens Networks to showcase a new
way of handling relationships with the world's six billion mobile users.
Nokia Siemens Networks was recognized for its advances in CEM at the
Global Telecoms Business (GTB) Innovation Awards 2012 in the wireless
infrastructure category where it won a joint award with Telkomsel for
its use of Nokia Siemens Networks' CEM on Demand portfolio. Guangdong
MCC in China has signed up to Nokia Siemens Networks' CEM software and
services, enabling it to improve customer experience by providing a
unified view of its customer data and continuous reporting of usage
trends. - During the year, Nokia Siemens Networks
completed the sale of its microwave transport business to DragonWave,
the sale of its fixed line Broadband Access business to ADTRAN and the
divestment of the assets of the non-core IPTV business to Belgacom and
Accenture. It also announced it had reached an agreement to sell its
Optical Networks business to Marlin Equity Partners and its Business
Support Systems business to Redknee.

PERSONNEL

PERSONNEL END OF QUARTER

Q4/2012

Q4/2011

YoY Change

Q3/2012

QoQChange

Devices & Services and corporate common

33 201

49 705

-33%

38 264

-13%

Location & Commerce

6 186

6 659

-7%

6 366

-3%

Nokia Siemens Networks

58 411

73 686

-21%

60 635

-4%

Nokia Group

97 798

130 050

-25%

105 265

-7%

The
average number of Nokia Group employees during the period from January
to December 2012 was 112 256, of which the average number of employees
at Location & Commerce and Nokia Siemens Networks was 6 441 and 64
052 respectively. At December 31, 2012, Nokia Group employed a total of
97 798 people (130 050 people at December 31, 2011), of which 6 186 were
employed by Location & Commerce (6 659 people at December 31, 2011)
and 58 411 were employed by Nokia Siemens Networks (73 686 people at
December 31, 2011).

SHARES

The
total number of Nokia shares at December 31, 2012, was 3 744 956 052.
At December 31, 2012, Nokia and its subsidiary companies owned 33 971
118 Nokia shares, representing approximately 0.9% of the total number of
Nokia shares and the total voting rights.

DIVIDEND

To
ensure strategic flexibility, the Nokia Board of Directors will propose
that no dividend payment will be made for 2012 (EUR 0.20 per share for
2011). Nokia's fourth quarter 2012 financial performance combined with
this dividend proposal further solidifies the company's strong liquidity
position.

The distributable funds on the balance sheet of the parent company as per December 31, 2012 amount to EUR 5 213 million.

RISKS AND FORWARD-LOOKING STATEMENTSIt
should be noted that Nokia and its business is exposed to various risks
and uncertainties and certain statements herein that are not historical
facts are forward-looking statements, including, without limitation,
those regarding: A) the expected plans and benefits of our partnership
with Microsoft to bring together complementary assets and expertise to
form a global mobile ecosystem for smartphones; B) the timing and
expected benefits of our strategies, including expected operational and
financial benefits and targets as well as changes in leadership and
operational structure; C) the timing of the deliveries of our products
and services; D) our ability to innovate, develop, execute and
commercialize new technologies, products and services; E) expectations
regarding market developments and structural changes; F) expectations
and targets regarding our industry volumes, market share, prices, net
sales and margins of our products and services; G) expectations and
targets regarding our operational priorities and results of operations;
H) expectations and targets regarding collaboration and partnering
arrangements; I) the outcome of pending and threatened litigation and
regulatory proceedings; J) expectations regarding the successful
completion of restructurings, investments, acquisitions and divestments
on a timely basis and our ability to achieve the financial and
operational targets set in connection with any such restructurings,
investments, acquisitions and divestments; and K) statements preceded by
"believe," "expect," "anticipate," "foresee," "target," "estimate,"
"designed," "aim", "plans," "intends," "will" or similar expressions.
These statements are based on management's best assumptions and beliefs
in light of the information currently available to it. Because they
involve risks and uncertainties, actual results may differ materially
from the results that we currently expect. Factors, including risks and
uncertainties, that could cause these differences include, but are not
limited to: 1) our success in the smartphone market, including our
ability to introduce and bring to market quantities of attractive,
competitively priced Nokia products that operate on the Windows Phone
operating system that are positively differentiated from our
competitors' products, both outside and within the Windows Phone
ecosystem; 2) our ability to make Nokia products that operate on the
Windows Phone operating system a competitive choice for consumers, and
together with Microsoft, our success in encouraging and supporting a
competitive and profitable global ecosystem for Windows Phone products
that achieves sufficient scale, value and attractiveness to all market
participants; 3) reduced demand for, and net sales of, Nokia Lumia
products that operate on the Windows Phone 7 operating system as a
result of increasing availability of Nokia Lumia products with the new
Windows Phone 8 operating system; 4) the expected continuing decline of
sales of Symbian devices and the significantly diminishing viability of
the Symbian smartphone platform; 5) our ability to produce attractive
and competitive devices in our Mobile Phones business unit including
feature phones and devices with more smartphone-like features such as
full touch devices, in a timely and cost efficient manner with
differentiated hardware, software, localized services and applications;
6) our ability to effectively and timely implement planned changes to
our operational structure, including the planned restructuring measures,
and to successfully complete the planned investments, acquisitions and
divestments in order to improve our operating model and achieve targeted
efficiencies and reductions in operating expenses as well as our
ability to accurately estimate the related restructuring charges and
restructuring related cash outflows; 7) our future sales performance,
among other factors, may require us to recognize allowances related to
excess component inventory, future purchase commitments and inventory
write-offs in our Devices & Services business; 8) our ability to
realize a return on our investment in next generation devices, platforms
and user experiences; 9) the intensity of competition in the various
markets where we do business and our ability to maintain or improve our
market position or respond successfully to changes in the competitive
environment; 10) our ability to retain, motivate, develop and recruit
appropriately skilled employees; 11) the success of our Location &
Commerce strategy, including our ability to establish a successful
location-based platform, extend our location-based services across
devices and operating systems, provide support for our Devices &
Services business and create new sources of revenue from our
location-based services and commerce assets; 12) our actual performance
in the short-term and long-term could be materially different from our
forecasts, which could impact future estimates of recoverable value of
our reporting units and may result in impairment charges; 13) our
success in collaboration and partnering arrangements with third parties,
including Microsoft; 14) our ability to increase our speed of
innovation, product development and execution to bring new innovative
and competitive mobile products and location-based or other services to
the market in a timely manner; 15) our dependence on the development of
the mobile and communications industry, including location-based and
other services industries, in numerous diverse markets, as well as on
general economic conditions globally and regionally; 16) our ability to
protect numerous patented standardized or proprietary technologies from
third-party infringement or actions to invalidate the intellectual
property rights of these technologies and our ability to maintain the
existing sources of intellectual property related income or establish
new such sources; 17) our ability to maintain and leverage our
traditional strengths in the mobile product market if we are unable to
retain the loyalty of our mobile operator and distributor customers and
consumers as a result of the implementation of our strategies or other
factors; 18) the success, financial condition and performance of our
suppliers, collaboration partners and customers; 19) our ability to
manage efficiently our manufacturing and logistics, as well as to ensure
the quality, safety, security and timely delivery of our products and
services; 20) our ability to source sufficient amounts of fully
functional quality components, sub-assemblies, software and services on a
timely basis without interruption and on favorable terms, particularly
as we ramp our new Lumia smartphone devices; 21) our ability to manage
our inventory and timely adapt our supply to meet changing demands for
our products, particularly as we ramp our new Lumia smartphone devices;
22) any actual or even alleged defects or other quality, safety and
security issues in our products; 23) the impact of a cybersecurity
breach or other factors leading to any actual or alleged loss, improper
disclosure or leakage of any personal or consumer data collected by us
or our partners or subcontractors, made available to us or stored in or
through our products; 24) our ability to successfully manage the pricing
of our products and costs related to our products and operations; 25)
exchange rate fluctuations, including, in particular, fluctuations
between the euro, which is our reporting currency, and the US dollar,
the Japanese yen and the Chinese yuan, as well as certain other
currencies; 26) our ability to protect the technologies, which we or
others develop or that we license, from claims that we have infringed
third parties' intellectual property rights, as well as our unrestricted
use on commercially acceptable terms of certain technologies in our
products and services; 27) the impact of economic, political, regulatory
or other developments on our sales, manufacturing facilities and assets
located in emerging market countries; 28) the impact of changes in
government policies, trade policies, laws or regulations where our
assets are located and where we do business; 29) the potential complex
tax issues and obligations we may incur to pay additional taxes in the
various jurisdictions in which we do business and our actual or
anticipated performance, among other factors, could result in allowances
related to deferred tax assets, 30) any disruption to information
technology systems and networks that our operations rely on, which may
be for instance caused by our inability to successfully and smoothly
implement our plans to streamline our IT organization including the
transfer of some activities and employees to strategic partners; 31)
unfavorable outcome of litigations and regulatory proceedings; 32)
allegations of possible health risks from electromagnetic fields
generated by base stations and mobile products and lawsuits related to
them, regardless of merit; 33) Nokia Siemens Networks ability to
implement its new strategy and restructuring plan effectively and in a
timely manner to improve its overall competitiveness and profitability;
34) Nokia Siemens Networks' success in the mobile broadband and services
market and Nokia Siemens Networks' ability to effectively and
profitably adapt its business and operations in a timely manner to the
increasingly diverse service needs of its customers; 35) Nokia Siemens
Networks' ability to maintain or improve its market position or respond
successfully to changes in the competitive environment; 36) Nokia
Siemens Networks' liquidity and its ability to meet its working capital
requirements; 37) Nokia Siemens Networks' ability to timely introduce
new competitive products, services, upgrades and technologies; 38) Nokia
Siemens Networks' ability to execute successfully its strategy for the
acquired Motorola Solutions wireless network infrastructure assets; 39)
developments under large, multi-year contracts or in relation to major
customers in the networks infrastructure and related services business;
40) the management of our customer financing exposure, particularly in
the networks infrastructure and related services business; 41) whether
ongoing or any additional governmental investigations into alleged
violations of law by some former employees of Siemens may involve and
affect the carrier-related assets and employees transferred by Siemens
to Nokia Siemens Networks; and 42) any impairment of Nokia Siemens
Networks customer relationships resulting from ongoing or any additional
governmental investigations involving the Siemens carrier-related
operations transferred to Nokia Siemens Networks, as well as the risk
factors specified on pages 13-47 of Nokia's annual report on Form 20-F
for the year ended December 31, 2011 under Item 3D. "Risk Factors."
Other unknown or unpredictable factors or underlying assumptions
subsequently proving to be incorrect could cause actual results to
differ materially from those in the forward-looking statements. Nokia
does not undertake any obligation to publicly update or revise
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent legally required.